LPL Financial (LPLA)
NASDAQ:LPLA
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LPL Financial
(NASDAQ:LPLA)
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Rating:60Neutral
Price Target:
$319.00
â–¼(-0.90% Downside)
Action:ReiteratedDate:02/24/26
The score is held back mainly by deteriorating 2025 cash flow (negative operating and free cash flow) and weak technicals (price below key moving averages with negative MACD). Offsetting these are solid operational momentum highlighted on the earnings call (record AUM/EPS and strong organic net new assets) and a balance sheet that improved in 2025, though valuation remains relatively rich (P/E ~30) with little dividend support.
Positive Factors
Scale: Record AUM & Organic Growth
Record AUM ($2.4T) and $147B of annual organic net new assets create a large, recurring fee base. Durable AUM-linked advisory fees smooth revenue across cycles, enable cross-sell and pricing leverage, and underpin medium-term operating leverage as integrations drive scale benefits.
Negative Factors
Deteriorating Cash Flow
A reversal to negative operating and free cash flow in 2025 weakens cash conversion and increases near-term funding risk. This deterioration limits internal capital for integration, buybacks or dividends, raises reliance on external financing, and heightens sensitivity to short-term working capital and investment timing.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale: Record AUM & Organic Growth
Record AUM ($2.4T) and $147B of annual organic net new assets create a large, recurring fee base. Durable AUM-linked advisory fees smooth revenue across cycles, enable cross-sell and pricing leverage, and underpin medium-term operating leverage as integrations drive scale benefits.
Read all positive factors
LPL Financial (LPLA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.03B
Dividend Yield0.32%
Average Volume (3M)936.19K
Price to Earnings (P/E)32.6
Beta (1Y)1.24
Revenue Growth35.19%
EPS Growth-18.62%
CountryUS
Employees9,118
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)5.23
Shares Outstanding80,188,080
10 Day Avg. Volume760,113
30 Day Avg. Volume936,186
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)5.26
Price to Sales (P/S)1.65
P/FCF Ratio-28.29
Enterprise Value/Market Cap1.28
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit7.95
Enterprise Value/Ebitda14.66
Forecast
1Y Price Target
$409.67Price Target Upside27.27% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)22.72
Revenue Forecast (FY)$18.87B
LPL Financial Business Overview & Revenue Model
Company Description
LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its...
How the Company Makes Money
LPL Financial generates revenue through multiple key streams, primarily by charging fees for asset management and advisory services, as well as commissions from brokerage transactions. The company earns a significant portion of its revenue from ad...
LPL Financial Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights income from different business lines, revealing which areas drive growth and profitability, and indicating strategic focus.
Highlights income from different business lines, revealing which areas drive growth and profitability, and indicating strategic focus.
Data provided by:
The Fly
The FlyLPL Financial Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: record adjusted EPS, record assets under management ($2.4 trillion), strong full-year organic net new assets ($147 billion, ~8% growth), high retention (97%) and clear progress on strategic M&A (Commonwealth, Atria, Prudential) and operating efficiency. Key near-term risks highlighted include Commonwealth retention noise (adviser sign-ups currently in the low-80% of assets versus a 90% target), elevated transition assistance and TA levels, short-term recruiting cadence and timing for pipeline pull-through, modest yield pressure from recent rate cuts, and higher 2026 G&A driven by Commonwealth integration. On balance, the company’s material operational and financial wins and clear path to realize Commonwealth synergies outweigh the near-term integration and recruiting timing challenges.Positive Updates
Record Earnings per Share
Q4 adjusted EPS of $5.23, up 23% year-over-year, and record adjusted EPS for the fiscal year of $20.09, driven by organic growth and expense discipline.
Negative Updates
Commonwealth Retention Uncertainty and Adviser Departures
Press suggested retention running below the 90% asset retention target; management reports advisers representing low-80% of assets have signed to stay so far (management continues to expect ~90% asset retention once onboarding completes). Some adviser headcount departures have been publicized and remain an area of focus and risk.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Earnings per Share
Q4 adjusted EPS of $5.23, up 23% year-over-year, and record adjusted EPS for the fiscal year of $20.09, driven by organic growth and expense discipline.
Read all positive updates
Company Guidance
The company guided to continued operating progress in 2026 with specific near-term and full-year metrics: Q1 core G&A is expected to be $540M–$560M and full‑year core G&A is guided to $1.775B–$1.820B before Commonwealth (Commonwealth adds ~$380M–$390M, bringing total 2026 core G&A to $2.155B–$2.210B); Q1 TA loan amortization is expected to rise ~ $5M (Q4 TA amortization was $133M) and Q1 depreciation & amortization to rise ~$5M (Q4 D&A $105M); promotional expense was $76M in Q4 and is expected to be roughly flat in Q1. Financial and business outlook drivers include total AUM at a record $2.4T, Q4 organic net new assets $23B (~4% annualized) and FY organic NNA $147B (~8%), recruited assets $14B in Q4 ($104B for the year), 97% asset retention (Q4 and LTM), client cash $61B (up $5B Q/Q) with client cash revenue $456M in Q4, ICA yield 341 bps (down 10 bps Q/Q with a ~10 bps full‑quarter headwind expected in Q1) and ICA fixed‑rate mix ~55% (targeting low‑ to mid‑60% as balances normalize). They reiterated Commonwealth onboarding on track with an expected run‑rate EBITDA of ~$425M when integrated, Q4 adjusted EPS was $5.23 (record; $20.09 for the year) with adjusted pretax margin ~36% and Q4 gross profit $1.542B; corporate cash was $470M and leverage ~1.95x (near midpoint), and management said the fee change will add ~ $35M of service & fee revenue per quarter (≈ $140M annualized) with Q1 service & fee revenue up ~ $25M sequentially.LPL Financial Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.99B | 12.39B | 10.05B | 8.60B | 7.72B |
| Gross Profit | 4.35B | 3.37B | 3.05B | 2.37B | 1.71B |
| EBITDA | 2.18B | 2.11B | 1.99B | 1.53B | 936.43M |
| Net Income | 863.02M | 1.06B | 1.07B | 845.70M | 459.87M |
Balance Sheet | |||||
| Total Assets | 18.49B | 13.32B | 10.39B | 9.48B | 7.99B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 1.01B | 541.76M | 884.28M | 514.92M |
| Total Debt | 7.26B | 5.75B | 3.96B | 2.95B | 3.05B |
| Total Liabilities | 13.15B | 10.39B | 8.31B | 7.31B | 6.32B |
| Stockholders Equity | 5.34B | 2.93B | 2.08B | 2.17B | 1.67B |
Cash Flow | |||||
| Free Cash Flow | -993.42M | -284.94M | 109.33M | 1.64B | 237.15M |
| Operating Cash Flow | -423.04M | 277.59M | 512.61M | 1.95B | 453.13M |
| Investing Cash Flow | -2.37B | -1.59B | -860.19M | -376.40M | -458.64M |
| Financing Cash Flow | 3.17B | 1.42B | -208.53M | -504.27M | 278.84M |
LPL Financial Technical Analysis
Neutral
321.89
Price Trends
318.29
Positive
341.42
Negative
348.71
Negative
Market Momentum
-0.31
Negative
60.57
Neutral
93.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LPLA, the sentiment is Neutral. The current price of 321.89 is above the 20-day moving average (MA) of 299.09, above the 50-day MA of 318.29, and below the 200-day MA of 348.71, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 93.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LPLA.
LPL Financial Risk Analysis
LPL Financial disclosed 32 risk factors in its most recent earnings report. LPL Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
LPL Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.66B | 28.21 | 13.10% | 0.45% | 22.17% | 40.13% | |
75 Outperform | $31.73B | 29.11 | 19.88% | 0.46% | 11.88% | 28.96% | |
74 Outperform | $166.11B | 20.00 | 17.91% | 1.07% | 5.90% | 66.60% | |
70 Outperform | $28.81B | 14.06 | 16.94% | 1.26% | 6.45% | 5.85% | |
70 Outperform | $11.96B | 12.55 | 11.96% | 1.43% | 7.54% | 2.73% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $25.03B | 32.56 | 18.57% | 0.32% | 35.19% | -18.62% |
* Financial Sector Average
LPLA
LPL Financial
321.89
9.14
2.92%
IBKR
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74.55
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RJF
Raymond James Financial
150.37
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SF
Stifel Financial
79.59
23.44
41.73%
SCHW
Charles Schwab
96.79
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26.94%
TW
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124.06
-9.01
-6.77%
LPL Financial Corporate Events
Business Operations and StrategyExecutive/Board Changes
LPL Financial appoints Somesh Khanna to board
Positive
Jan 8, 2026
On January 5, 2026, LPL Financial Holdings Inc. elected Somesh Khanna to its board of directors as an independent director, a move announced publicly on January 8, 2026. Khanna, currently a senior advisor at McKinsey Company and executive co-chai...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.